>>You can use flash with the iPhone but you have to use skyfire www.skyfire.com This company did have a windows mobile 6.5 version out that they quit supporting. At one point I emailed them about why they dropped WM6.5 and if they had plans to release a WP7 version. I got a response back saying that they will "never - ever again support any version of Microsoft windows mobile".
>>Flash does have is share of security problems - but I don't know how much of those holes exist in the mobile version. There are mobile anti-virus tools that might help but again this is an area I haven't really looked into yet.
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>If the tail can wag the dog then Microsoft can tell the WWW not to use flash.
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>Until then, flash is extremely widely used and needs to be supported.

Thought this was a good read. Take it for what it's worth: http://www.apple.com/hotnews/thoughts-on-flash/